Net Benefit Can Be Maximized by Equating

question 144

Multiple Choice

Net benefit can be maximized by equating:

• A) total benefit to total cost.
• B) marginal benefit to marginal cost.
• C) marginal benefit to total cost.
• D) total benefit to marginal cost.

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Definitions:

Fabricating Department

The division within a manufacturing company where raw materials are assembled or processed into finished goods.

Assembling Department

A section within a manufacturing facility where components are put together to form a final product.

Static Budget

A financial plan that remains unchanged over the budget period regardless of changes in operational activities or volumes.

Flexible Budget

A budget that adjusts or scales according to the volume of activity, providing a more useful tool for performance evaluation.